Licchavi Lyceum

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Licchavi Lyceum

“Economy of Odisha reflects a paradoxical situation.” Briefly discuss the reasons for this and suggest some important steps that can be taken for proper development of the State.

The economy of Odisha presents a paradoxical situation—despite being rich in natural resources and showing high growth rates, the state continues to face widespread poverty, regional disparities, and underdevelopment in key sectors.

Reasons for the Paradox

  • Odisha has abundant mineral wealth (coal, iron ore, bauxite), yet many districts, especially tribal and rural areas, remain economically backward.
  • The economy is still agrarian-dependent, with a large population engaged in low-productivity agriculture vulnerable to climatic shocks like droughts and cyclones.
  • Industrial development is skewed towards raw material extraction, with limited value addition and job creation.
  • Infrastructure gaps in transport, education, and healthcare restrict inclusive growth, especially in the KBK region (Koraput-Balangir-Kalahandi).
  • Unemployment and low skill levels among youth, particularly in tribal belts, hinder economic mobility.
  • Frequent natural disasters disrupt economic activities and slow down development efforts.

Steps for Proper Development

  • Promote economic diversification by investing in manufacturing, food processing, and green industries to reduce over-reliance on mining and agriculture.
  • Strengthen infrastructure, especially in Tier-II cities like Cuttack, Rourkela, and Sambalpur, to support urbanization and attract investment.
  • Expand skill development programs, vocational training, and STEM education to prepare youth for emerging sectors.
  • Empower tribal communities through forest-based enterprises, targeted welfare schemes, and improved access to education and healthcare.
  • Enhance climate resilience by promoting sustainable agriculture, expanding renewable energy, and improving disaster preparedness.
  • Ensure transparent governance, attract FDI, and support MSMEs through incentives and infrastructure.

In conclusion, Odisha’s paradox lies in its potential versus performance. Bridging this gap requires a multi-sectoral strategy that balances economic ambition with social equity and environmental sustainability.